Oil Down but Larger-Than-Expected Draw in U.S. Crude Stocks Keeps Losses Small By

© Reuters.

By Gina Lee – Oil was down Thursday morning in Asia, but r, after a larger-than-expected draw in U.S. crude oil stocks in the U.S. gave the black liquid a boost.

inched down 0.01% to $75.45 by 10:37 PM ET (2:37 AM GMT) and inched down 0.04% to $72.58. Both Brent and WTI futures remained above the $70 mark.

Crude oil and fuel stockpiles dropped sharply during the past week as refiners in the U.S. Gulf of Mexico and oil facilities offshore have yet to complete their recovery from Hurricane Ida’s impact, the U.S. Energy Information Administration (EIA) said on Wednesday.

The showed a draw of 6.422 million barrels, much bigger than the 3.544-million-barrel draw in forecasts prepared by and the previous week’s 1.529-million-barrel draw.

, released the day before, showed a draw of 5.437 million barrels.

“The data follow warnings from the International Energy Agency that supply lost from storms in the Gulf of Mexico would offset gains from OPEC,” ANZ Research analysts said in a note.

Although the shutdown caused by Ida triggered a global decline in supply for the first time in five months, the market is expected to begin balancing in October as the Organization of the Petroleum Exporting Countries and allies, or OPEC+, continue with its plan to increase supply.

However, companies in the Gulf of Mexico were able to quickly restore pipeline service and electricity after the more recent Hurricane Nicolas caused minor flooding and power outages in Texas and Louisiana. They have thus been able to concentrate on efforts to repair the far more significant damage from the category-4 Ida.

About 30% of the Gulf of Mexico’s production remained shut as of Wednesday, according to the Bureau of Safety and Environmental Enforcement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button